In another win for Standard &
Poor's (S&P) and Moody 's Corp., a
New York federal judge dismissed a lawsuitclaiming the companies defrauded investors who relied on their ratings
before buying $63 billion of investment-grade mortgage-backed securities,
Bloomberg recently reported.
According to Bloomberg, the claims against S&P and Moody's were part of a
lawsuit filed by institutional investors against various banks and rating
companies accused of making untrue statements and omissions in registrations
statements and prospectuses for 84 offerings sold as safe. S&P and Moody's weren't the only companies to dodge the bullet. Complaints
against Credit-Based Asset Servicing & Securitization LLC (C-Bass), First Franklin Financial Corp., and Merrill
Lynch Mortgage Lending Inc. were also thrown out in a two-page order by U.S.
District Judge Jed Rakoff. The basis for the dismissals was not immediately made clear, but an
explanation of the reasoning is expected in a written opinion by the judge. C-Bass attorney Jamie Wareham of Paul Hastings Janofsky & Walker LLP told
Bloomberg, "The likely reason to come from Judge Rakoff's opinion will be
important to many defendants in financial crisis litigation. The disclosures
were adequate, and the market knew of the risks associated with subprime
products." This isn't the first lawsuit investors have filed against S&P and Moody's.
And it isn't the first one to be dismissed either. As DSNews.com reported
,
in January, a judge dismissed a lawsuit against S&P and Moody's brought by
investors who claimed the two ratings agencies defrauded them on nearly $100
billion in mortgage-backed securities (MBS) issued back in 2007 by the
now-defunct Lehman Brothers Holdings, Inc. In addition, on March 29, the two companies, along with Fitch Ratings, won
dismissal of a negligence and fraud lawsuit by two California investors who
lost money on highly-rated bonds, Bloomberg said. Promote your business and
services online and offline, find out when our next mixer is.Connect with other successful
womenReal Estate Investing Education,
take advantage of today's real estate marketBuild Your Business-Drive Your Dream Promo
Code: legendwww.TotalSolutionsAlliance.com Connect with me on Facebook
Twitter LinkedIn
Poor's (S&P) and Moody 's Corp., a
New York federal judge dismissed a lawsuitclaiming the companies defrauded investors who relied on their ratings
before buying $63 billion of investment-grade mortgage-backed securities,
Bloomberg recently reported.
According to Bloomberg, the claims against S&P and Moody's were part of a
lawsuit filed by institutional investors against various banks and rating
companies accused of making untrue statements and omissions in registrations
statements and prospectuses for 84 offerings sold as safe. S&P and Moody's weren't the only companies to dodge the bullet. Complaints
against Credit-Based Asset Servicing & Securitization LLC (C-Bass), First Franklin Financial Corp., and Merrill
Lynch Mortgage Lending Inc. were also thrown out in a two-page order by U.S.
District Judge Jed Rakoff. The basis for the dismissals was not immediately made clear, but an
explanation of the reasoning is expected in a written opinion by the judge. C-Bass attorney Jamie Wareham of Paul Hastings Janofsky & Walker LLP told
Bloomberg, "The likely reason to come from Judge Rakoff's opinion will be
important to many defendants in financial crisis litigation. The disclosures
were adequate, and the market knew of the risks associated with subprime
products." This isn't the first lawsuit investors have filed against S&P and Moody's.
And it isn't the first one to be dismissed either. As DSNews.com reported
,
in January, a judge dismissed a lawsuit against S&P and Moody's brought by
investors who claimed the two ratings agencies defrauded them on nearly $100
billion in mortgage-backed securities (MBS) issued back in 2007 by the
now-defunct Lehman Brothers Holdings, Inc. In addition, on March 29, the two companies, along with Fitch Ratings, won
dismissal of a negligence and fraud lawsuit by two California investors who
lost money on highly-rated bonds, Bloomberg said. Promote your business and
services online and offline, find out when our next mixer is.Connect with other successful
womenReal Estate Investing Education,
take advantage of today's real estate marketBuild Your Business-Drive Your Dream Promo
Code: legendwww.TotalSolutionsAlliance.com Connect with me on Facebook
Twitter LinkedIn
via Ping.fm
No comments:
Post a Comment